ETASSUM28110 - Schedule 2 share incentive plan (SIP): Supplementary and defined terms: Jointly owned companies

Paragraph 91 allows a Schedule 2 SIP which is a group plan (see ETASSUM20120) to be extended to include companies which are jointly owned by the company and any company controlled by that jointly owned company (‘JOC’).

A JOC is one that is not controlled by any one person and 50% of the issued share capital is owned by one person and 50% by another. The conditions for this are that no JOC or any company controlled by that company may be a constituent company in more than one group plan nor may the JOC (or one of its subsidiaries) be a constituent company of a group plan if one of those companies (the JOC and its subsidiaries) is a constituent of another group plan.

For the purposes of determining “control” each joint owner of a JOC is regarded as controlling every jointly owned company and any company controlled by that company.

A diagram word 21KB to illustrate control.

This only applies for the purposes of determining whether the JOC and its subsidiaries may participate in a group plan; a JOC is not regarded as under the control of either joint owner for the purposes of determining whether the JOC or one of its subsidiaries may establish a Schedule 2 SIP (see ETASSUM23140).